What is Decoy Pricing and how can your Small Business use it?

We have done a few episodes recently about how to manage cost increases and how to raise your prices. Dave recently came across the concept of Decoy Pricing that is worth looking at. What is Decoy Pricing? Decoy pricing is a strategy that aims to guide a potential customer towards a specific product or service by presenting an inferior choice. Listen in to learn more! 00:00:00 Small Business Show #371 for Wednesday, March 16, 2022 00:01:00 Ben Thompson’s Stratechery Newsletter about Shopify 00:02:41 Traveler’s Tips! 00:06:53 Expensive stuff! Sponsors 00:08:08 SPONSOR: Novo: Get Your Free business banking account in just 10 minutes at BankNovo.com/SBS. 00:09:49 SPONSOR: Shopify – For anyone to sell anywhere, Shopify is giving you a fourteen-day trial and full access to Shopify’s entire suite of features. Visit Shopify.com/sbs to get yours! 00:11:30 Decoy Pricing The Popcorn Example. Large is the most profitable Small – $3.50 Medium – $6.50 Large – $7.50 Service Providers: Use Bundling and Features The Economist example Digital Edition: $59 Print Edition: $125 Print + Digital Edition: $125 The Amazon Example Search BusinessShow.co for “Story” Tobi, the Snowboarder who started Shopify 00:30:35 Anchoring “F*** the cup, pour it in my hand for a dime!” 00:35:45 SBS 371 Outtro Next week: Delegating The post What is Decoy Pricing and how can your Small Business use it? – Small Business Show 371 appeared first on Business Brain - The Entrepreneurs' Podcast.